SEC

Government Whistleblower and Compliance Programs Share Same Goals

Whistleblower programs and companies’ internal compliance processes aren’t in competition for information from whistleblowers. Counsel representing individuals who participate in government whistleblower programs understand that such a conclusion has it all wrong. *** According to the Securities and Exchange Commission’s fiscal year 2017 annual report to Congress on its whistleblower program, about 62% of award recipients from fiscal years 2012…

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SEC Ends Probe Into Paxos Over Binance USD Token – WSJ

The Securities and Exchange Commission has ended its investigation into Paxos Trust in relation to Binance USD, a digital asset that Paxos issues and lists, the cryptocurrency platform said Thursday. Paxos said it received a formal termination notice on Tuesday from the SEC, saying it won’t recommend taking an enforcement action against the firm over BUSD, a Binance-branded stablecoin pegged…

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Judge Sends Coinbase Back to the Drawing Board Over Efforts to Subpoena SEC’s Gary Gensler

The judge took specific issue with Coinbase requesting documents from Gensler predating his term as chair of the regulatory agency. Kevin Schwartz, an attorney with Wachtell, Lipton, Rosen & Katz representing Coinbase, said the agency has refused to even discuss the totality of the documents Coinbase might have, but that Gensler’s communications were relevant to the case. Jorge Tenreiro, an…

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US appeals court rejects lenient test for asset freezes in SEC enforcement actions | Reuters

A U.S. appeals court has just deepened a split among the federal circuits on the proper test for asset freezes in cases brought by the U.S. Securities and Exchange Commission. The Philadelphia-based 3rd U.S. Circuit Court of Appeals ruled on Tuesday that the SEC cannot sidestep the stringent, four-part test for obtaining a preliminary injunction when it seeks to freeze…

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SEC’s ‘Swiss Army’ Accounting Law Tested by Cyber Breach Charges

R.R. Donnelley & Sons Co. agreed last month to pay $2.1 million to settle Securities and Exchange Commission charges that the marketing and printing company violated disclosure and internal accounting control rules stemming from a 2021 cybersecurity breach. The settlement, which comes amid heightened SEC focus on cybersecurity, represents a new—and expansive—take on the accounting control provisions. The regulator included…

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What’s Past is Prologue: Enforcing the Federal Securities Laws in the Age of Crypto

In short, my tenure as Director has coincided with extreme volatility and investor risk in the crypto markets. This has been vividly demonstrated by the dramatic increase in the number of complaints about crypto that investors submitted to the SEC’s Office of Investor Education and Advocacy (“OIEA”), from 820 in fiscal year 2019, the first year that OIEA’s annual list…

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Big Deal / Little Deal: Why the U.S. Supreme Court’s Loper Bright Opinion Is a Gamechanger While Its Jarkesy Opinion Is Insignificant in Comparison

The final week of June was a big one for those who have been following what seems to be a constriction of federal agency power under Chief Justice Roberts.  A decision in Securities and Exchange Commission v. Jarkesy came on Thursday, June 27 followed by the Court’s decision in Loper Bright Enterprises v. Raimondo just the day after, on Friday,…

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After ‘Chevron’ deference, “respect”: ‘Loper Bright’ and agency policymaking | Reuters

From deference to respect What replaces Chevron deference is for “courts to do their ordinary job” of determining the “best reading” of the statute using all the traditional tools of statutory interpretation at their disposal. “Due respect” to an agency’s view remains one such tool. Reviewing courts should look to pre-Chevron approaches to agency cases, especially the Supreme Court’s 1944…

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